Brice Dunlop’s Post

This may be the biggest M&A deal of the year, but it's also the “unhealthiest”. Mars can say all they want that it's the future of snacking, but where's the 'healthy' in that future? While big brands continue to push processed, indulgent options, there's a growing movement toward something better—something that nourishes the body and supports long-term well-being without sacrificing taste. At Agrovision, we’re not just offering an alternative but leading a revolution. Our Fruitist berries have been exquisitely selected to be famously flavorful, farm-fresh, and crunchy. https://lnkd.in/gPKvriNF cc:  Poul Weihrauch, Steve Cahillane, Andrew Clarke

On a quiet Wednesday in August 2024, Mars ended a decade-long drought in big-ticket food M&A. The privately-held confectionery giant's USD 36 billion bid for Kellanova sent shockwaves through the packaged foods industry and likely had investment bankers not on the deal choking on their morning coffee as they realized they'd missed the largest transaction in the sector since Kraft-Heinz in 2015 😱. The numbers were enough to wake up any consumer banker: USD 83.50 per share, a 33% premium to Kellanova's 52-week high, and an eyebrow-raising 16.4x LTM EBITDA multiple 🤨. Within about a week, however, the news cycle, research analysts and merger arbs moved on to other things as there was not much more to report on or analyze, especially as Mars was private held. In September, however, Kellanova filed its preliminary proxy statement on the transaction. This is where all the juicy bits about a transaction are often buried: 🍽 A lunch meeting at Skadden that wasn't just lunch 💲 An unsolicited offer 📈 Four offers in 10 weeks ⏱ A ticking fee that disappeared 📰 The Reuters leak that brought out the interlopers 🛑 Why Mars paid a USD1.25bn reverse termination fee Full analysis in comments 👇 #MandA #FMCG #Consumer #PackagedFoods #Mars #Kellanova

Mars Gobbles Up Kellanova: A Mega-Deal in the Making 🍿 Mars is making a huge bet on the FMCG space by acquiring Kellanova for a whopping $36 billion! 🤯 This move brings iconic brands like Pringles, Pop-Tarts, and Eggo under the Mars umbrella, significantly expanding their snacking empire. While this deal seems like a match made in snack heaven, there are a few things to consider. On one hand, combining Mars' global reach with Kellanova's strong portfolio could be a game-changer. On the other hand, regulatory hurdles and potential integration challenges could be roadblocks. This deal is definitely shaking up the industry and we'll be watching closely to see how it unfolds. What are your thoughts on this mega-merger? 🤔 #Mars #Kellanova #FMCG #acquisition #M&A #snacking #business #industrytrends

Over the last couple of weeks, since this news broke, many people within the industry and many people in general have asked me about Mars's acquisition of Kellanova. Here are my thoughts in general: For consumers: this merger promises consumers an exciting range of new products and innovations catering to diverse tastes and dietary preferences. However, with fewer players in the market, we might see rising prices and changes in product availability. For Mars: this deal is a strategic move to expand beyond its stronghold in confectionery (think M&M’s and Snickers) into savory snacks, directly challenging competitors like Hershey. The acquisition enhances Mars' global reach, product offerings, and innovation capabilities, setting the stage for intense competition in the snacking industry. As the merger unfolds, it’s clear that the snacking industry is entering a new era—one where Mars is positioning itself as a dominant player across both sweet and savory categories. The big are getting much bigger! *** What many don't know is that Mars is a dominant player in the animal/pet food/pet care category many times ranked #1 with a $20B+ in revenue, 25%+ market share) and they are for the most part the #1 chocolate company in the world ($20B+), and well you can guess what this will do for their snack business. Stay tuned as we watch how this impacts the food & beverage manufacturing landscape and what it means for your favorite snacks! 🍫🍿 #foodmanufacturing #Mars #Kellanova #cpgindustry #forhireresults

Mars Acquires Kellanova in a Sweet Deal 🍬 ! Mars, the confectionary giant, has acquired Kellanova, the maker of iconic brands like Pringles, Pop-Tarts, and Cheez-It, for a whopping $35.9 billion! This strategic move expands Mars' snacking empire, adding salty snacks and crackers to their candy and chocolate portfolio. Additionally, Kellanova's strong presence in Africa and Latin America expands Mars' reach. Key Details 🔍 : - Mars will pay $83.50 per share, a 69% premium over Kellanova's recent stock price. - The deal strengthens Mars' snacking dominance, despite concerns about health-conscious consumer trends. - Regulatory hurdles are expected, as the Biden administration scrutinizes large mergers. The deal marks a significant expansion for Mars, solidifying its position as a global snacking leader. With a combined portfolio of M&M's, Snickers, and now Pringles and Pop-Tarts, Mars is poised to dominate the snack aisle. #Mars #Kellanova #acquisition #snacks #foodindustry #business

“Big news” would be an understatement for today's headline! The more I learn about the complementary aspects of the companies and possibilities with the combined snacking portfolios, the more excited I get about this future of snacking. 😋👀 #LifeAtK

Future of Snacking is going to get BIGGER and BETTER. Look forward to being a part of this powerful merger of legacy and iconic brands. “Snacking is better together”. #kellanova #MARS Learn more about our next chapter at: futureofsnacking.com

Exciting times ahead

Mars announced the $35bn acquisition of Kellanova this morning. It’s a strategically sensible deal, an acquisiton of a size that actually matters to Mars but also helps it diversify away from chocolate at a point where the cocoa price cycle is high and expected to remain so for some time. The two companies have very complimentary portfolios, Mars’ snacking products are broadly chocolate and candy in nature whereas Kellanova’s are savoury / salty. So to generate any real anti-trust debate here, one would need to say that these products compete against each other – which is unlikely. If we did that, the combined company only has about 10% of the overall US snacking market, so again its really hard to see any impediment to it closing. Having said that, there is a lot of political pressure on the price of food at the moment, and in particular low-income families are exposed to the packaged food market so one would expect to see regulators, particularly the US FTC, laser focused on this. We have seen the FTC debate novel theories of harm in transactions like this in recent times – this one should be expected to get put through the regulatory wringer. Ultimately though, its hard to see any real path to it getting blocked. #kellanova #mars #mkpadvisors

Ethel’s 🐔 Industry news 📢 So Mars has agreed 👍🏼 a $30 billion deal to buy Kellanova 🤩 I think this is a great move by Mars as it will help them move away from a choc heavy portfolio and let them diversify their strategy in this space. What do you think 🤔? Let me know in the comments below 👇 #fmcg #hiring #culture #chickens #justcluckingdoit